The transaction continues Castlelake’s strong momentum in specialty finance
MINNEAPOLIS, June 13, 2022 /PRNewswire/ — Castlelake, LP (“Castlelake”), a global alternative investment manager with 17 years’ experience investing in high net worth opportunities, today announced an agreement with ProApprove to acquire up to 350 million dollars of new receivables from installment payment contracts for do-it-yourselfers. ProApprove is a wholly owned subsidiary of Credibly, an established technology-driven lending platform for small and medium-sized businesses.
ProApprove expects to draw on Credibly’s extensive dealer network, which includes several hundred contractors. Expenditure on renovation work in owner-occupied housing has risen steadily since 2019 and is expected to continue to rise in 20221. The installment contracts newly created by ProApprove are more than informed of more than 10 years of debt collection data from mortgage customers $55 million of financing.
“We are pleased to support the expansion of ProApprove’s home improvement financing program at a time when homeowners across the United States are seeing increased demand for financing solutions,” said Matt Klein, Partner, Global Specialty Finance and Business Development & Capital Markets at Castlelake. “We believe ProApprove’s parent company, Credibly, has established itself as an experienced commercial lending platform with a strong focus on risk. We believe this transaction provides an opportunity to support a new product for Credibly in a historically underserved consumer market.”
“Castlelake’s experience in underwriting revolving credit is invaluable as we seek to accelerate the ProApprove program and expand access to financing for homebuilders and homeowners,” said Ryan RosettCo-Founder and Chief Executive Officer of Credably.
Since 2015, Castlelake has invested over 3 billion dollars in specialty financing opportunities, including more than 3,500 commercial and industrial loans and over five million consumer receivables. Recent activities include Castlelake’s investment in IMH, a specialist lender focused on helping small and mid-sized real estate investors and developers meet short-term liquidity needs; a forward flow purchase agreement with Chesswood, a specialty finance company specializing in the commercial equipment finance market; and a funding agreement with 118 118 Money, a UK-based financial services company focused on providing high-integrity products that help consumers build good financial habits.
Castlelake, LP is a global alternative investment manager focused on investing in real assets, specialty finance and aviation. Castlelake was founded in 2005 and has approximately $21 billion in assets under management. The Castlelake team consists of more than 250 experienced professionals, including 95 investment professionals, in six offices across North America, Europe and Asia. For more information, visit https://www.castlelake.com/.
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1 Joint Center for Housing Studies of Harvard University“Leading Indicator of Remodeling Activity (LIRA)” October 2021and “Residential conversion in top cities should be accelerated in 2022” February 24, 2022.